LondonMetric sees profits rise on £21.8m sale

Joseph Millis
LONDONMETRIC Property yesterday reported strong first-half earnings growth, driven by a move away from offices and homes and into retail distribution properties.

The company also continued its portfolio shuffle, selling the Cairngorm Retail Park in Milton Keynes to Royal London Asset Management for £21.8m, reflecting a net initial yield of 6.10 per cent, and exchanging contracts to buy a 37-acre site from Bedford Borough Council which is currently zoned for distribution.

The property company reported a profit of £69.7m for the six months to 30 September, up from £44.1m a year earlier, after booking a reval­ua­tion surplus of £52.3m, up from £35.6m, and a 6.4 per cent increase in contracted rental income to £83m a year.

“The last six months have continued to benefit from signific­ant equity flows into the UK real estate sector as liquidity has contin­ued to return to nearly every part of the market,” LondonMetric chair­man Patrick Vaughan. Pricing continues to remain largely rational and with the weight of money available we expect further compression over the coming period on well let assets, especially as prospects for rental value growth continue to become more visible.”